- Metals Australia (MLS) has signed a binding agreement to acquire the Nepean South Nickel Project near Coolgardie in Western Australia
- The project hosts semi-massive to massive sulphides and historical drilling returned three metres at 2.34g/t gold and 12 metres at 1.29 per cent nickel
- The acquisition is expected to complete on or around March 5 and will set Metals Australia back $25,000 in cash and $75,000 in shares
- The company initially intends to complete an airborne electromagnetic survey along the entire length of a prospective ultramafic sequence and later a drilling campaign
- Shares have been trading flat at 0.3 cents
Metals Australia (MLS) has signed a binding agreement to acquire the Nepean South Nickel Project near Coolgardie in Western Australia.
Director Gino D’Anna said it is an opportune time to buy the asset, located along strike from the historical Nepean sulfide nickel mine.
“The acquisition of the Nepean South project complements our existing asset portfolio which is levered to the battery metals sector, with nickel sulphate playing a vital role in the electrification transition.”
“Historic exploration at the Nepean South project undertaken by Mincor in 2007 has demonstrated both the grade of the mineralisation and the shallow nature of the nickel sulphides,” he continued,
Results from rotary air blast drilling completed by Mincor Resources (MCR) included intercepts of three metres at 2.34 g/t gold from 57 metres and 12 metres at 1.29 per cent nickel from 15 metres.
The 35.22-square-kilometre project also encompasses an electromagnetic (EM) conductor identified at the northern extent of the tenement and interpreted as continuing south along strike.
Metals Australia considers the conductor to be a high priority target and, following completion of the acquisition, intends to complete an airborne EM survey along the entire length of the prospective ultramafic sequence.
The acquisition is expected to complete on or around March 5, pending satisfactory completion of due diligence and other conditions.
As consideration, Metals Australia will pay $25,000 in cash and $75,000 in shares at an issue price equal to the higher of 0.2 cents or the five-day volume-weighted average price immediately prior to the proposed issue date of consideration shares.
Shares have been trading flat at 0.3 cents at 10:27 am AEDT.